Keep the Hedge On With Options

Don't be lulled into optimism by Monday's rally. Instead, prepare for a return to troubling markets with a clever hedging strategy.

As economic storm clouds mass over Europe, a bit of sunshine has brightened the fortunes of U.S. stocks on Monday.

The news of better-than-expected sales on Black Friday helped push the Dow Jones Industrial Average up 305 points in midday trading. But it might be wise to refrain from celebrating a rally that may have very short legs.